The Central government employees received 28% Dearness Allowance (DA) from July 1, however, now there is a wait for the DA of June 2021. The government might soon release the Dearness Allowance for the month of June and if that happens then the total DA would increase to 31% instead of 28%, which means the salary of Central government employees will increase yet again.
June's 3% Dearness Allowance is yet to increase
The Dearness allowance for June 2021 has not been decided yet, however, it is clear from the AICPI data for January 2021 to May 2021 that 3% DA will increase further.
It is important to note that in January 2020, the DA was increased by 4%, in June 2020, there was an increase of 3%, and later it again increased by 4% in January 2021. This is how DA reached 28% but now with the 3% increase in June, the DA will reach 31%.
Check full calculation of salary increase on basic pay
According to the 7th Pay Commission Matrix, the salary range of Level-1 of Central employees ranges from Rs 18,000 to Rs 56,900. Meaning the minimum basic salary is Rs 18,000. If we base our calculations on the minimum salary, this is how much increase will be seen in September.
Calculation on 28% Dearness Allowance
The total annual dearness allowance on the basic salary of Rs 18,000 will be Rs 60,480. But talking about the difference, the annual increase in salary will be Rs 23,760.
- Basic salary of the employee Rs. 18,000
- New Dearness Allowance (28%) Rs.5040/month
- Old Dearness Allowance (17%) Rs.3060/month
- Calculate the difference: 5040-3060 = Rs.1980/month
- Increase in annual salary 1980X12 = Rs 23760
Calculation on 31% Dearness Allowance
Now if the Dearness Allowance increases by 3 percent in June, then the total DA will become 31%. Now on the basic salary of Rs 18,000, the total annual dearness allowance will be Rs 66,960. But talking about the difference, the annual increase in salary will be Rs 30,240.
- Basic salary of the employee Rs. 18,000
- New Dearness Allowance (31%) Rs.5580/month
- Old Dearness Allowance (17%) Rs.3060/month
- Calculate the difference: 5580-3060 = Rs.2520/month
- Increase in annual salary 2520X12 = Rs 30,240
